Crypto Currents: Banks tokenize money market funds and XRP surges

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BANKS EMBRACE BLOCKCHAIN FOR TRADITIONAL ASSETS: Bank of New York Mellon (BK) and Goldman Sachs (GS) are collaborating to use blockchain to maintain ownership records of money market funds. The firms will use Goldman’s GS DAP blockchain platform to record tokenized versions of select BNY funds. The move is part of a broader push for tokenization of real-world assets, which McKinsey estimates could become a $2T market by 2030. Mathew McDermott, global head of Digital Assets at Goldman Sachs, said using tokens on GS DAP would “unlock their utility as a form of collateral.” BlackRock (BLK), Federated Hermes (FHI), and Fidelity Investments are participating in the initial launch.

DOJ AND GLOBAL REGULATORS STEP UP SCRUTINY: The U.S. Department of Justice is ramping up its pursuit of crypto-related fraud. In one case, federal prosecutors are working to return $7.1M in crypto to victims of a $97M oil and gas investment scheme where proceeds were converted into bitcoin, ethereum (ETH), tether (USDT), and USD Coin (USDC). In a separate high-profile case, a scammer allegedly defrauded victims, who appear to be MoonPay executives, of $250,000. Meanwhile, South Korea’s Financial Supervisory Service has informally advised local asset managers to limit their exposure to crypto-related stocks like Coinbase (COIN) and Strategy (MSTR). Despite this, regulators there are showing more openness, with eight central South Korean banks reportedly collaborating on a won-pegged stablecoin set to launch by 2026.

XRP MARKET CAP SOARS: XRP (XRP) has seen its market capitalization surge to $203.89B, making it the 91st largest asset in the world and surpassing traditional giants like PepsiCo (PEP), AT&T (T), and Uber (UBER). The token hit a new all-time high for the first time in seven years, following the conclusion of a five-year legal battle with the SEC. Since President Trump’s re-election in November 2024, XRP has soared 585.8%. However, experts caution against directly comparing the market capitalization of a cryptocurrency with that of a public company, as a company’s market cap represents legal claims on earnings and assets, which is not the case for a crypto token’s value.

CORPORATE TREASURIES EMBRACE BITCOIN: A growing number of companies are adding bitcoin (BTC) to their balance sheets, viewing it as a hedge against monetary expansion and a key asset for business operations. Australia’s only ASX-listed crypto fund manager, DigitalX, recently spent about $8.8M to acquire 74.7 bitcoin, boosting its total holdings to 499.8 bitcoin, which is valued at approximately $91.3M. Leigh Travers, the firm’s non-executive chairman, said the strategy is to “acquire and hold bitcoin as our primary treasury reserve asset,” with “no plans whatsoever” to buy other cryptos. The trend extends to traditional industries, with Japan’s century-old textile firm, Kitabo Co., planning to purchase up to $5.4M in bitcoin to stabilize its finances. This strategy was popularized by Strategy, the largest corporate holder with over 597,000 bitcoin. Other firms, like Hong Kong-based DDC Enterprise (DDC), and Canadian renewable energy firm Solar Bank, are also reportedly accumulating the asset.

PRICE ACTION: As of time of writing, bitcoin (BTC) was trading at $117,950.15 , while ethereum (ETH) was $3,602.00.